Leaseholders: Properties with Cladding

Lord Best Excerpts

Thursday 7th January 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, I think the solution will include a levy on the development community, but I also want to talk about construction products. Look at the margins made by those who sold some of the construction materials used on high-rises such as Grenfell Tower. They made astronomical profits. Profits have been made and the result was products that are not fit for purpose. We have seen total regulatory system failure and construction practices that require significant regulatory change. As Buildings Safety Minister, I am committed to that.

[Lord Best (CB) [V]]

My Lords, many leaseholders are shared owners who own perhaps only 25% of their homes, because they could not afford to buy more. However, they are liable for 100% of their flat’s share of the cost—maybe £40,000 or more—to rectify defects, such as cladding replacement. Would the Minister give special consideration to rescuing these shared owners, who are disproportionately affected, with many facing bankruptcy if they are not helped?

[Lord Greenhalgh (Con)]

I thank the noble Lord for his comments on shared ownership. This tenure can be particularly unfair, if you own a proportion of your property and rent the rest, but are hit with 100% with the liability, when the problem was not of your own making. I take these points on board and we will do everything we can to ensure that people in shared ownership, on the pathway to home ownership, are protected as best they can be.